Modernization of Libyan Oil Refineries and Petrochemical Plants

Modernization of Libyan Oil Refineries and Petrochemical Plants

Presentation Contents 1. Introduction 2. Challenges Facing the Existing Libyan Oil refineries and Petrochemical Plants. 3. Refining and Petrochemical Integration. 4. Enhancing and Developing Libyan Down-Stream Sector 5. Conclusions

AZZAWIYA TRIPOLI BANGHAZI TOBRUK RASLANUF BREGA SARIR SABHA REFINERIES 3 LOCATIONS

Libyan refineries Capacities and Types Total Capacity = 380 kbbl/day

Production / Demand Comparison k t/y -2010 Total Production = 13,731 k t/y 5

Certain Libyan and EU Gasoline Specifications Parameter Libyan Spec. EU Spec. RON 95 min 95 min Sulphur, ppm 150 max 10 max Olefins, vol. % - 18 max Aromatics, vol. % - 35 % max Benzene, vol.% 4 % max 1 % max Oxygen, wt % 2.7 max 2.7 max

Certain Libyan and EU Diesel Specifications Parameter Libyan Spec. EU Spec. Cetane index 50 min 46 min Sulphur, ppm 800 max 10 max Flash point, 0 C 60 min 55 min Aromatic, wt % 11% max 11% max Density @ 15 0 C kg/m 2 Reported 820-845

Challenges Facing Libyan Oil Refineries 1- Simple Configuration 2-Limitted Capacity 3- Products Specification Libyan Petrochemical industries are limited in - Capacity, - Conversion units

Why do we need to upgrade our refineries? -Market Factors. Increase in the production of transportation fuel. Residue with high sulfur becoming more limited. Tighter bunker fuel regulations -Economic Incentives. Lower cost of fuel oil. Increase yields of high value products -Environmental. Products Specifications. Refinery Emissions

What will Happened to Small Refineries? -Because of their small size the costs on per liter basis would be higher. Therefore the existing small refineries in the country maybe upgraded with limited capital investment in order to satisfy the local demand for the area.

Petrochemicals RAS Lanuf Complex 1. Ethylene Plant 2. Polyethylene Plant Marsa Brega 1. Ammonia Plants 2. Urea Plants (lifeco Company) 3. Methanol Plants

Petrochemicals at Raslanuf Feed ( Naphtha ) 1200 KT/ YEAR Product Capacity (KT/Y) Start Date ETHYLENE 330 PROPYLENE 170 April 1987 MIXED C 4 130 PY.GASOLINE 324 HDPE 80 Aug.1998 LLDPE 80

Petrochemicals at Mersa Brega Feed ( Nat.Gas ) 190 MMSCF/ DAY Product Capacity (T/D) Start Date Ammonia -1 1200 1978 Ammonia -2 1000 1982 Urea - 1 1000 1981 Urea - 2 1750 1983 Methanol - 1 1000 1977 Methanol - 2 1000 1985

Refining & Petrochemicals Integration Drivers for Refining and Petrochemical Integration -Integrated refinery and petrochemical operations minimize costs and optimize product distribution -Optimized integration of hydrocarbon processes, energy, hydrogen, and water -Feedstock flexibility to capitalize on available low cost crude oils and intermediates -Supply chain optimization provides faster delivery of products -More flexibility in reprocessing, storing and transporting off specification products -More outlets for high-value products

Refinery-Petrochemical Interface Refinery Stream Petrochemical Alternative use for Refinery Stream FCC offgas FCC Olefine Reformate Naphtha Gas oil LPG FCC Ethylene FCC Propylene FCC Butylene Kerosene FCC LCO Ethylene Propylene, Butylenes BTX Olefins Olefins Olefins EB/ SM Polypropylene/ Cumene MEK, MTBE N-Paraffins Naphthalene Fuel Gas Alkylation Gasoline Blending Gasoline Diesel Domestic Heating or cooking fuel Fuel gas Alkylation Alkylation Jet Fuel Diesel heating oil blendstock after hydrotreating

NOC New Strategic Plan for the Development and Upgrading the Existing Refineries and Petrochemical Plants Objectives: The main objectives of the strategic plan are: Enhances and develop the down stream sector (refineries, petrochemical) through upgrading the existing refineries and petrochemical plants and/or building new refineries and petrochemical plants with economic capacity. In addition, the proposed plan should consider the possibility of integration between refineries and petrochemical industries. The strategic plan should fulfill the following:

-Achieving maximum refining, gas and petrochemical margins by increasing the added value to the barrel of oil. - attaining security of supply of oil products and export the rest to the international markets. -Meeting the international market specifications and environmental regulations. -Developing the human resources skills, teamwork and zero tolerance with respect to health, safety and environmental compliance. -Improving cost and operational efficiencies. - Creating investment opportunity in the country. -Creating job opportunities for Libyan. -Facilitating the country s industrialization process.

and upgrading the existing refineries and petrochemical industries. This scenario also will include building new refinery (Hydroskiming Type) in the south of Libya with total capacity around 30 kbpd. This scenario consist of: 1. Upgrading Zawia oil refinery to refine 150 kbpd instead of 120 kbpd using Sharara-Hamada blend as a feedstock. The Main units that will be added are: Pre-flash drum, Isomerization,CCR, RFCC, Dimerization and Sulfur recovery unit.

Products Pattern of Zawia Refinery after Development k t/y Product Name Current Planned LPG Naphtha Gasoline Kerosene Diesel Fuel oil Slurry oil LCO 70 618 853 1019 1338 1254 - - 173.8-3119.4 828.8 1492.3-156.8 399.0

2. Development and upgrading of LERCO Refinery by increasing the existing capacity to 380 kbpd. Different configuration schemes are considered by LERCO. Development the existing ethylene plant at Ras Lanuf. 3. Upgrading Tobruk refinery by increasing the capacity to 30 kbpd. -NHTD and CCR 4. Building Grass root Refinery (Hydro-skimming ) with design capacity 30 kbpd in the south of Libya. 5. Sarir and Brega Refineries are remained unchanged. The total crude oil to be processed according to this scenario is around 610 kbpd.

Second Scenario: This scenario is based on widen the petrochemical industries through building two petrochemical complexes with economic capacity. In addition, new grass root refineries with high throughput are also considered in this scenario. Condensates and naphtha will be used as feedstock to the petrochemical industries. This scenario consist of : 1. Building grass root refinery with design capacity 300kb/d as well as petrochemical complex at the west of Libya. The naphtha from this refinery and the condensate from Mellita complex will be used as feedstock to the petrochemical. The proposed configuration of the refinery is : CDU, CCR, RFCC, Hydrotreating unit, Alkylation, sulphur recovery unit. In addition, first, second generation of petrochemical products are considered in this scenario.

Products Pattern of Zawia Refinery after Development k t/y Product Name Planned LPG Naphtha Gasoline Kerosene Diesel Fuel oil Slurry oil LCO Propylene 310.5 3777.7 2585.1 1919.3 3452.4-332.5 569.4 508.9

2. Building grass root refinery with design capacity around 300kbpd and a petrochemical complex at the east of Libya. 3. New small refinery (Hydroskimming) with design capacity nearly 30 kbpd at south of Libya is considered in this scenario. 4. Development and upgrading of LERCO Refinery by increasing the existing capacity to 380 kbpd. Different configuration schemes are considered by LERCO. 5. Sarir and Brega Refineries are remained unchanged The total crude to be processed according to this scenario is around 1050 kbpd.

Conclusions 1- The configuration of Libyan refineries are simple and the capacities are limited. As a result of this the processing cost per barrel is higher which affects negatively on the margin of the refineries. In addition, the local demand from fuels can not be met. Also Libyan specification particularly of transportation fuels are away from international specifications. Therefore expansion and upgrading of the existing refineries are necessary. 2- The petrochemical plants in Libya are limited in capacity and producing only primary petrochemical products. So, the expansion of this industry is important.

3. Two different scenarios are considered in the master plan. Upgrading and development of the existing refineries and petrochemical plants are considered in the first scenario with total crude oil processing capacity about 610 kbpd. The second scenario is based on widen the petrochemical industries through building two petrochemical complexes with economic capacity. In addition, new grass root refineries with high throughput are also considered in this scenario. Condensates and naphtha will be used as feedstock to the petrochemical industries.

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